Cendant CEO Exercises Options

Cendant Corporation (NYSE:CD) today announced that its Chairman, President and CEO, Henry R. Silverman, exercised 2,771,053 options set to expire in September 2003 and sold the underlying shares on July 29, 2003.

The options exercised were granted to Mr. Silverman in 1993 by HFS Incorporated, a predecessor of Cendant, at an exercise price, adjusted for subsequent stock splits, of $4.64.Ê Pursuant to Cendant’s Securities Trading Policy, all senior officers and directors of Cendant may only trade in Cendant securities during the ten business days following the public distribution of its quarterly earnings results.Ê As a result, this was the last remaining trading window prior to the expiration of the aforementioned options in September 2003.

Mr. Silverman continues to own 33.6 million options to acquire Cendant stock and 8 million shares of Cendant stock directly.Ê This transaction represented about 6% of Mr. Silverman’s holdings in Cendant stock.Ê

This is Mr. Silverman’s first exercise of options where the proceeds were not utilized to purchase Cendant common stock since February, 1998.Ê The after tax proceeds from this transaction will be utilized to repay a margin loan incurred by Mr. Silverman in connection with his purchase of 5,348,340 shares of Cendant common stock in June 2000.

Mr. Silverman’s next tranche of options expires in the second quarter of 2005.


Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately 90,000 employees, New York City-based Cendant provides these services to businesses and consumers in over 100 countries.